VA Loans, which are backed by the US Department of Veteran Affairs, were designed to make homeownership more accessible to Active Duty military and veterans. With the 0% down option available, almost 90% of VA loans are obtained without a down payment.
VA borrowers purchasing a home without a down payment can shop for home values within the conforming loan limits for their area. Although some of the closing costs may get rolled into the loan, it is important to keep them in mind as they can add up for a few thousand dollars.
In addition to the standard closing costs, the VA also charges a Funding Fee. However, if you've sustained a service-related disability, you may be able to get the fee waived. This fee is a percentage of your loan amount, which changes depending on the size of the down payment. For first-time borrowers with no down payment, the VA Funding Fee is 2.3% of the loan amount.